Looking for Japanese smaller cap stock ideas? The Q2 edition of Uguisu Value publishes this weekend [update: published May 14]. If you’re new to my website or if you’ve been considering subscribing, now is a timely opportunity to receive updates on the 5 best ideas published to date and 3 new watch-list ideas. For important background on the newsletter see this newsletter link or click via the left menu and you can also scroll below for past posts. In short, Uguisu Value is focused on small and micro cap Japanese stocks trading at significant discounts whether or both to net asset value and/or earning power.
Four of the five best ideas remain very attractively valued and as is common with value investing can be trying on the patience of investors — they have all increased their book values and three of them trade at an even bigger discount to market value. The lone exception has encountered unexpected operating challenges that have resulted in lower revenues and a sharp drop in profitability, but the company/management has a strong track record, solid balance sheet, and there is a very valuable fixed asset component.
More details of these five companies with their latest earnings updates as well as three watch-list ideas appear in the Q2 edition of Uguisu Value.
The Uguisu Value newsletter, focused on micro-cap and small-cap Japanese stocks, has launched! The first edition features a micro-cap (>$50M <$300M) with a conservative 200%+ upside; an asymmetrical risk/reward profile with multiple value-unlocking catalysts including potential for the editor and private investor, Steven Towns, to engage management/BoD. Steven’s portfolio is highly-concentrated in thoroughly researched deep-conviction equities targeting baseline 2x(+) returns. Each quarterly edition of Uguisu Value will feature one in-depth writeup: such focus comes from Buffett’s “20-hole punch card” mindset and the fact that the best investors tend to have concentrated portfolios. Fluent in Japanese and a specialist in smaller-cap, domestic-demand focused Japanese companies, Steven’s research uses original Japanese language sources, often of companies that have little or no analyst coverage and no English (language) securities filings; all newsletters are published in English. Click for additional details and to subscribe. We look forward to welcoming you as a subscriber.
Japan-focused portfolio performance versus select benchmarks:
2013: 34.1% (40.1% in yen-denomination) | TSE-2: 44.2% | Jasdaq: 87.1% | Nikkei 225: 56.7% |
iShares MSIC Japan ETF (EWJ): 24.2% | WisdomTree Japan Hedged (DXJ): 38.1%
2014: 32.6% (49.1% in yen-denomination) | TSE-2: 23.0% | Jasdaq: 1.9% | Nikkei 225: 7.1% |
iShares MSCI Japan ETF (EWJ): -6.4% | WisdomTree Japan Hedged (DXJ): -1.9%
____________ The Uguisu Value newsletter has been reviewed and is endorsed by:
Guy Spier,Aquamarine Capital —“Excellent thinking and ideas for investing in Japan.”
Nate Tobik,Oddball Stocks —“Steven Towns is an expert on Japanese small caps. If you want exposure to cheap and safe Japanese stocks with a value-bent then Steven’s letter is the ultimate resource.”
Interested in a free copy of the first edition? Email us your name and affiliation (indiv./private investor or company name) and we’ll email you a copy prior to releasing the second edition scheduled for early April. Email: email@example.com.
This is the final post of my live-tweeting and highlighting of professor Larry Cunningham’s book, Berkshire Beyond Buffett. I’ve practically run out of superlatives…. ValueWalk (dot-com) reported Berkshire Beyond Buffett was among the top-10 books purchased in 2014 by its readers. I suspect the momentum will continue this year. If you’ve missed any of the tweets or posts, see them in order here: I, II, III, and IV (and follow on Twitter: @ActiveInvesting).
This is my fourth installment of notes and summary tweets of Larry Cunningham’s perspicacious book, Berkshire Beyond Buffett: The Enduring Value of Values. If you’ve missed any of the tweets or posts, see them in order here: I, II, and III (and follow on Twitter: @ActiveInvesting). I’ve selectively shared nuggets from Larry’s book and I’m finding Twitter’s 140 character limit to be just-right for capturing some of the highlights to share with others that will also spark my memory of the greater detail in the book; this also preserves the bulk of Larry’s hard work.
Here’s my latest installment of notes I’ve compiled while I continue to read Larry Cunningham’s wonderful book, Berkshire Beyond Buffett: The Enduring Value of Values. Chapter 6 (“Kinship”) is one of my favorites thus far. It seemed to come alive and really epitomize “the enduring value of values.” I will continue to shares notes in this way as it’s much more efficient (posting a summary of my live-tweets) than trying to go back and put my notes into prose. One-third finished reading, I can already say that Berkshire Beyond Buffett is a keeper for me and should be on your reading list if not already. See my earlier posts (I and II).
Larry Cunningham is one of the most respected authors who has written about Warren Buffett and Berkshire Hathaway. His Berkshire Beyond Buffett: The Enduring Value of Values is proving to be an informative read thus far — last week I posted some notes and takeaways from the first few chapters. This time I’m sharing more of the same from the remainder of chapter 3 as well as chapter 4, which is the first chapter of the second part of the book.
Susan Decker’s recent panel discussion comments pointed out some of the magic behind Berkshire Hathaway’s returns. There is nothing new for Berkshire followers and investors, except the tax-free comment that Decker made got me thinking. Buffett’s baby is simple conceptually (i.e. float-supported — Decker didn’t mention float, by the way — with cash flow rich capital allocation to, and flow back from, operating subsidiaries and portfolio securities) and has performed brilliantly in terms of the annual and cumulative profits/investment returns achieved. See’s Candies is one heck of an example (see the BBB link below).
I followed the herd and read Business Adventures (by the late John Brooks, originally published in 1969) over the summer like many others did after learning the book was Bill Gates’ favorite all-time business book (even better, it came recommended to him from none other than Warren Buffett). I previously posted some of my favorite quotes and notes from the excellent first chapter that covers the May 1962 crash, a flash crash of sorts of the time. Reading that post before or after my summary thoughts about Business Adventures that follow below is worth your time.
The rent is too damn high and the weather is too damn cold. Can I interest you in an all-weather portfolio? All kidding aside, if not already in your possession, get Larry Cunningham’s Berkshire Beyond Buffett: The Enduring Value of Values and enjoy the latest of Larry’s deep dives into Berkshire Hathaway (BRK.A, BRK.B). To keep these posts short I’ll share some interesting Berkshire Beyond Buffett notes every few chapters or so. Continue reading